Deteremine the value at the end of perpetual stream


Problem:

Given an interest rate of 10% per year, what is the value at the end of 5 years of a perpetual stream of 120$ annual payments starting at the end of year 9?

I dont understand the time fator in this question - i.e how do you encorporate year 9 and year 5 into the appropriate formula

Please provide the formula, solution and a brief explanation.

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Finance Basics: Deteremine the value at the end of perpetual stream
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